An enlightened discussion of U.K. carbon emissions policy by Robert Peston of BBC News. One of his conclusions:
One of the less visible consequences of Government policy on climate change is that it would lead to a massive transfer of wealth from the developed world to the developing world.
He is of course talking about the purchase of "carbon credits" abroad:
The transfer results from the mechanism laid down in the draft Climate Change Bill for achieving a 60 per cent reduction in carbon dioxide emissions by 2050.
It allows the purchase from abroad of “carbon credits” to hit the five-yearly targets for CO2 cuts along the way. What this means is that if the UK invests in projects in China, or India or Africa - for example - which would reduce their emissions, than those reductions in CO2 can be counted in an assessment of whether the UK has met its targets.
As an example, if carbon sequestration became a viable technology, then a British power generator could capture and bury the CO2 produced by a Chinese coal-fired plant and then count that CO2 against is own CO2 “budget” for carbon cuts.
And his other conclusion?
...this would not be dead money, handed over with no prospect of any financial return. If UK businesses were for example financing low-carbon power generation in China, those businesses would expect a share of the profits and dividends generated by the power generation.
And if you're wondering why the Europe is moving so aggressively on Kyoto and climate change policy in general, it is not due to some latent urge towards Socialism. Countries like Spain and Switzerland are already beginning to feel the negative effects of Global warming, the former nation quite severely.